L'Oreal Found Guilty Of Profiteering ₹ 186 Crore
The National Anti-Profiteering Authority (NAA) has found L'Oreal India guilty of not passing on GST rate cut benefit worth over ₹ 186.39 crores to its customers.
The Directorate General of Anti Profiteering (DGAP) investigation has found that L'Oreal India Pvt Ltd has not passed the benefits of the tax cut from 28 percent to 18 percent with effect from November 15, 2017, on a wide range of goods including face wash, shampoo, hair color, conditioner, and some makeup products.
DGAP investigation happened between November 15, 2017, to December 31, 2018, the NAA said, asking it to conduct further investigation to ascertain whether the benefits were passed on after December 2018 and file a report with NAA.
Rejecting the claim of L'Oreal that it has passed the benefit, the NAA said that a commensurate reduction in the price of goods did not happen and ruled that the company has profiteered ₹ 186,39,57,508 on account of the denial of the rate cut benefit to customers.
"The authority directs the Respondent to commensurately reduce the prices of the impacted goods," the NAA order said.
CommentsThe NAA further said that 50 percent of the profiteered amount or over ₹ 93.19 crores would have to be deposited in the central consumer welfare fund (CWF) and the remaining to CWF of states.